Those are two great questions. And we’re going to provide some answers.
We’re also going to discuss a nexus between CMMC certification and cyber insurance audit requirements that may enable you to kill two birds with one stone.
In this post, we’ll drill down into these three critical aspects of cyber insurance:
- What is cyber insurance, and how does it work?
- What are the business benefits?
- Are there similarities between CMMC certification and cyber insurance audit requirements?
So what is cyber insurance, and how does it work?
A cyber insurance policy is designed to cover privacy, data, and network exposures. The list of regulations and statutes continues to expand regarding the use and protection of cyber security information, as well as notification requirements in the event of a breach. As cyber exposures continue evolving, so will your need to ensure that your business is protected if a cyber attack occurs.
Cyber insurance policies can vary from hundreds of dollars per year to tens of thousands. The cost of the policy will depend on a number of factors, including:
- Type, quantity, and sensitivity of the information
- Size of the IT enterprise—number and locations of servers, storage devices, etc.
- Type and number of data and user access points and controls—web, employees, contractors, etc.
- Current security vulnerabilities, etc.
Do the business benefits of cyber insurance outweigh the costs?
That depends on your business. Cyber insurance provides security breach and incident coverage over and above your general liability and professional liability insurance coverage. You can also design your policy to cover breach recovery costs, ransom and extortion costs, breach notification costs, loss of income, etc. Businesses should customize their policy to balance potential vulnerabilities and liabilities.
Additional business recovery costs can include hiring consultants to help with data recovery, replacement hardware and software, general IT consulting services, public relations costs, repairing a damaged business reputation, etc.
Some things that you’ll want to ask your insurance company about, related to costs that might not be covered, include:
- Third-party lawsuits
- Legal fees in general
- Intentional, negligent acts on your company’s part
- Property damage or physical injury
- Acts of terrorism
Cyber insurance can be an extremely effective weapon against cyber crimes and data breaches. But it’s up to you and your team of IT security experts to find the right policy to fit with your overarching security management framework and infrastructure.
Are there similarities between CMMC certification and cyber insurance audit requirements?
The short answer to that question is yes. There is no absolute requirement standard for DoD contractors or related businesses to become CMMC certified or to buy cyber insurance at this time. But, as we point out in a recent post, CMMC compliance requirements are an inevitable reality. CMMC implementation timelines may also be moving closer than the original target date of October 2025.
The right cyber insurance policy might also be a powerful, cost-effective tool in your cybersecurity armament.
Both CMMC certification and the implementation of cyber insurance require an audit of your current security practices, policies, and infrastructure.
So we’re offering a complimentary initial security assessment for DoD small businesses, contractors, and subcontractors. This is an excellent opportunity to assess your cybersecurity environment for CMMC certification and cyber insurance at the same time.
And we’re providing the initial assessment at no cost to you.
At SME, we have a team of experts with all of the extensive experience and certifications that it takes to keep up with today’s incredibly fast-paced world of cybersecurity. We are laser-focused on information security, so you don’t have to be.
Are cybersecurity issues and potential threats keeping you up at night? Do you have questions about CMMC requirements for DoD contractors and small businesses? Let us handle your information security so you can focus on growing your business.
Take advantage of our no-obligation CMMC certification and cybersecurity insurance readiness assessment with no obligation and no cost to you.
Call us at 703-378-4110 Schedule Your Free Cybersecurity Assessment Today!